A NOTE FROM MATT
We at Parasec have been closely monitoring the Corporate Transparency Act (CTA) for the past year. This new regulation goes into effect on January 1, 2024, and will require millions of companies registered to do business in the United States to file a report containing their beneficial ownership information (BOI) with the Financial Crimes Enforcement Network (FinCEN). According to FinCEN, over 32 million existing companies will be affected, as well as an additional 5 million businesses every year thereafter.
Some companies will have a full year to file a BOI report, while others will have just 90 days from receiving actual or public notice of their business’ registration or creation. Failure to submit a complete, accurate BOI report may result in hefty civil or criminal penalties, including imprisonment and fines.
At Parasec, we understand the importance of meeting this new compliance requirement and are here to help. Starting on January 2, 2024, we will launch a new BOI filing service to assist businesses in complying with this new regulation and avoiding penalties by submitting complete and accurate BOI reports on time with confidence. We have developed a user-friendly BOI filing platform to ensure that we collect all the necessary data required to complete your order and meet BOI filing requirements.
In the meantime, we have created an FAQ page and several informational sheets and checklists to help our clients prepare for the new requirements. Find them all here.
California: Changes to FBN Statements
Starting on January 1, 2024, Assembly Bill 878 will bring changes to the way fictitious business name (FBN) statements are filed. From that date, FBN statement applicants will no longer have to provide their residential address on the statement. Instead, they will only need to include a business mailing address if it’s different from the business address. If you wish to read the bill in full, go here.
Canada: Joins the Hague Convention
Canada is scheduled to become the 125th member of the Hague Convention on January 11, 2024. Global Affairs Canada has issued a statement that says the accession will provide Canadians with a cost-effective and streamlined way to have their Canadian public documents accepted abroad. More than 200,000 Canadian public documents are authenticated annually. If you require a document to be apostilled or legalized for use in a foreign country, our team of experts can help simplify your next international transaction. Visit our website for a list of current Hague Convention nations. For further assistance, please contact our team at firstname.lastname@example.org.
Delaware: Annual Reports Due by March 1st
Please note that all active domestic corporations registered in Delaware must file their annual reports and pay franchise taxes for the previous year by March 1st each year. It is mandatory to complete the filing and payment process electronically. Failure to file by the deadline may result in a penalty of $200 plus interest at a rate of 1.5% per month. If you require assistance with filing your report and paying taxes and fees, our compliance specialists are available to help. You can reach out to them at email@example.com.
Kansas: Biennial Filing Requirement
Effective January 1, 2024, businesses located in Kansas will have to submit an information report to the Kansas Secretary of State every two years instead of annually. This change in policy aims to simplify the paperwork process for business owners in the state. The content of the report will stay the same, and only the year will change. Reports for companies established in even-numbered years will be due in even-numbered years, while those established in odd-numbered years will be due in odd-numbered years. The bill also allows reports for multiple limited liability entities to be submitted at once, as long as each report is filed in the first year. To view the announcement from the Kansas Secretary of State, go here.
Various States: Potential Delays Due to Severe Weather
During this time of year, unexpected office closures and processing delays are common due to severe weather conditions experienced in many parts of the country. Extreme weather can also lead to shipping delays. Every year we see multiple closures throughout the country. To avoid any unwanted postponements, please plan to submit any time-sensitive documents in advance. To start the process of filing or retrieving a document, please give us a call at 800.533.7272.
Entity Formation Services
If you’re looking to incorporate a business, we can help make the process seamless. Our team of trained professionals can prepare and file all the necessary formation or qualification documents to establish a variety of entities. Whether you want to form a corporation, start an LLC, or establish some other entity type, we can make it easy for you while ensuring that your entity is set up correctly from the beginning. To learn more, please feel free to contact us at firstname.lastname@example.org.
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